New Discoveries, Strong Balance Sheet & Enviable Pipeline in Val d Or, Quebec October 2017 TSXV: QMX. Corporate Presentation TSX-V: QMX

Transcription

1 New Discoveries, Strong Balance Sheet & Enviable Pipeline in Val d Or, Quebec October 2017 TSXV: QMX Corporate Presentation TSX-V: QMX

2 Cautionary Note Regarding Forward Looking Statements FORWARD-LOOKING INFORMATION: This presentation contains certain forward-looking information under applicable securities laws concerning the business, operations and financial performance and condition of QMX Gold Corporation. Forward-looking information includes, but is not limited to, statements with respect to the benefits and the development potential of the properties of QMX Gold Corporation; the future price of gold; the estimation of mineral reserves and resources; drilling and other exploration potential; costs; liquidity issues; permitting; success of exploration activities; and currency exchange rate fluctuations. Forward-looking information may be characterized by words such as plan, expect, project, intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Information and assumptions upon which such forward-looking information is based includes but is not limited to; title to mineral properties; understanding of geological trends and influences in the region; financing requirements; and general economic conditions. Many of these assumptions are based on factors and events that are not within the control of QMX Gold and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information includes changes in market conditions, fluctuating metal prices and currency exchange rates, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, as well as those risk factors discussed or referred to in the Management s Discussion and Analysis for QMX Gold Corporation filed with the securities regulatory authorities in Canada and available at under the corporations profile on SEDAR at Although QMX Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. QMX Gold undertakes no obligation to update forward-looking information if circumstances or management s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information. Comparative market information is as of a date prior to the date of this presentation. IMPORTANT NOTICE: This presentation does not constitute an offer to buy or an invitation to sell, any of the securities of QMX Gold Corporation. Such an offer may only be made pursuant to a registration statement and prospectus filed with the U.S. Securities and Exchange Commission and an offer to purchase and circular filed with Canadian securities regulatory authorities. CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES: This presentation uses the terms Measured, Indicated and Inferred Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. Inferred Resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. NATIONAL INSTRUMENT : David Rigg, P.Geo. the Senior VP of Exploration of the Company and a Qualified Person under NI , has supervised the preparation of and approved the scientific and technical information in this presentation. 2

3 QMX Gold Capital Structure (QMX-V) Val d Or Mining Camp a Highly Prolific Region of Canada Toronto Venture Exchange Frankfurt Exchange QMX OU2A Capital Structure Shares Outstanding: 164.1mln Options: 10.7mln Warrants: 6.1mln Cash: ~C$7.5mln Long-term Debt*: ~C$2.2mln Market Cap: C$46mln Canada QMX GOLD Val d Or, Quebec Strategic Investors: Osisko Gold Royalties 14.2% Probe Metals 9.1% Toronto Montreal As at Oct 5, 2017 *Excluding ~C$3.9 million relating to deferred closure costs. 3

4 QMX Gold Current Valuation Highly Prospective Land Package One of the largest property packages across the heart of the Val d Or Mining Camp QMX vs Other Companies Active in Val d'or: Market Cap (C$M) $756 $141 $26 $36 $46 $55 Alexandria Minerals Cartier Resources QMX Gold Monarques Gold Probe Metals Richmont Mines QMX vs Other Companies Active in Val d'or: Enterprise Value (C$M) $664 $21 $26 $45 $45 $105 Alexandria Minerals Cartier Resources QMX Gold Monarques Gold Probe Metals Richmont Mines *As at October 5,

5 Located on Highly Productive Abitibi Belt Prolific Past Producing Region For Gold & Base Metals Gold Abitibi Belt - Third Largest Gold District in the World Many of Canada s major mining companies originated from the Abitibi Region 8 Major Gold Mining Camps QMX Gold is located in Val d Or on the Southeastern portion of the Abitibi Belt Base Metals World-renowned for Base Metal Deposits (Volcanogenic Massive Sulphide Deposits) 4 Major Base Metal Mining Camps 29 Current or Past-Producing Mines including, Kid Creek, Horne & Quemont, LaRonde & Dumagami and Louvicourt 5

6 Southeast Abitibi Val d Or, Quebec Historical Activity Across Val d Or Mining Camp 6

7 Balance Sheet Restructured & Exploration Drilling Underway Exploring Enviable Position in Val d Or Quebec Strong Exploration Pipeline on Highly Prospective Land Package QUEBEC Strategy: Systematically evaluate ~200km² land package - prioritizing and drill testing near term targets and evaluating longer term potential. ONTARIO QMX GOLD Val-d Or, Qc. High Priority Targets: Bonnefond South Plug and Bevcon Bonnefond South - Data compilation - completed - Drill testing model reinterpretation - Underway Bevcon - Data compilation and preparing drill targets - Underway - Drilling expected to commence by end of September Toronto Montreal Follow-Up on Recent Success: Southwestern Zone and Beacon Discoveries Evaluating follow-up programs given new discoveries on Southwestern and Beacon Zones Longer Term Focus Systematically Test Prospective Zones Multiple prospective Gold and Base Metal targets with limited recent exploration Evaluate potential custom milling contracts for Aurbel Gold Mill 7

8 Val d Or Mining Camp Property Enviable Land Position with Multiple Prospective Targets QMX Gold s Val d Or Mining Camp Property Taking a Systematic and Methodical Approach Val d Or Eldorado Gold (previously Integra) River Zone Lac Herbin Mine Southwestern Zone Aurbel Mill Beacon Zone Richmont Mines Probe Metals Deep West VMS N Probe Metals Bonnefond South Plug QMX Land Package Priority Zones Bonnefond South Plug Drilling Now Bevcon Preparing Targets Follow-Up Southwestern Zone Beacon Zone Evaluating Dunraine Zone Longer Term Targets Deep West VMS River Zone Bevcon Zone Alexandria Minerals 2017 QMX GOLD DISCOVERIES 8

9 QMX Gold Near Term Opportunity Bonnefond South Plug Zone Active Drilling Bonnefond South Plug 9

10 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone Re-evaluating Model Completed Data Compilation - Drilling Underway AUR Resources discovered a plug-like, tonalitic intrusion 2km east of the Louvicourt mine. AUR results incl. 1.9 g/t Au over 55m incl g/t over 3m. Historical QMX drilling returned up to 12.2 g/t Au over 12m. Mineralized veins in shears in a tonalite/granodiorite plug - similar to Plugs on Integra s Lamaque Property. Geological & structural compilation suggests possible misinterpretation of the shear & vein orientations. 10

11 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone Re-evaluating Model Drilling Underway at Bonnefond South Data compilation completed and drill targets set in late June. Drilling is ongoing to test a reinterpretation of the historical geological model. AUR Resources discovered the plug-like, tonalitic intrusion (Bonnefond South Plug) which contains gold in association with shear and tensional quartz-tourmaline veining. The gold target bears many similarities to the target environment on Eldorado Gold s Lamaque Project (previously Integra Gold). The current geological interpretation indicates that the gold system remains open on strike and at depth. Phase I program consists of nine holes for 4,500 meters of diamond drilling and was developed to confirm vein, fault and shear orientations by more closely spaced drilling using oriented core. The first two holes have encountered shear and tension veining within intrusive rocks at depths and intervals largely projected from adjacent historic drill holes. Veins are typically quartz-tourmaline. Samples from core have been submitted for analysis. Assay results are expected in three to four weeks. The veins are associated with strong wall rock alteration and bleaching. Structural work is progressing. Phase II drilling program is being developed to validate lateral and depth extensions of this gold system, particularly the eastern extension of the historical intersection of 12 g/t Au over 12 meters. 11

12 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone Drill Plan Historically drilled North to South - Missed south dipping veins Gyro tools confirm wrong orientation of the historical drillholes Core orientation tools will be used to determine the precise core angles of the different gold bearing veins and shear zones 12 12

13 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone Lateral Extension Potential 13

14 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone First Hole Positive Results in First Hole 1 st hole of program encountered mineralization and alteration within the Tonalite Plug from the bedrock interface at 61.7m down to 180.6m for 1.5g/t over 118.9m; incl. 2.5g/t over 44.1m and 1.6g/t over 33.1m. Presence of sheared mafic dykes hosting quartz-tourmaline veins also confirmed; 3.6g/t over 8.4m, incl. 4.2g/t over 6.5m; and 2.5g/t over 11.0m, incl. 4.5g/t over 5.6m; Gold mineralization is associated with at least three different sets of quartz-tourmaline veins; Three shear zones were also intersected within footwall volcanic rocks below the plug grading up to 2.8g/t over 6.5ms; 6 holes for 2,780m have been completed to date, assays for holes 2 through 6 are pending. 1.5g/t gold over meters Schematic Section of Hole

15 QMX Gold Near Term Opportunity 1 - Bonnefond South Plug Zone First Hole Hole Number MTN Zone 9, Nad 83 MTM Zone 9, Nad 83 Azimuth Dip Hole Length From To Length* Au** Description Easting Northing ( ) ( ) (meters) (meters) (meters) (meters) (g/t) Tonalite Including Tonalite with Mafic Dyke or and Mafic Dyke with Including Tonalite Shear Zone Shear Zone 15

16 QMX Gold Near Term Opportunity 2 - Bevcon Zone Commencing Drill Program Bevcon Zone 16

17 QMX Gold Future Opportunities 2 - Bevcon Zone Unexplored area over 6 km No Exploration in this region for over 3 decades 17

18 QMX Gold Future Opportunities 2 - Bevcon Zone Geological Model & North Shear Zone Potential 43% of the production by bulk mining 18

19 QMX Gold Future Opportunities 2 - Bevcon Zone - Applied Geological Model in the Intrusion 19

20 QMX Gold Follow-Up Southwestern Zone Evaluating Results & New Discovery Southwestern Zone 20

21 QMX Gold Follow-Up Southwestern Zone New Discovery Southwestern Zone Limited exploration since recent successes in region Magnetic anomalies and shear zone continuity trending eastward from Lamaque Gold Property (Integra Gold) OreVision IP survey completed across western side of property Completed a reconnaissance drill program consisting of ~5,400m targeting several prospective structures within the approx 4x3km area Evaluating recent discovery and developing follow-up drill campaign Recent Success Encouraging gold intersections, incl. 14.0g/t over 0.7m and 4.9g/t over 3.2m. All 3 principal mineralization and alteration types known in the Val d Or camp are evident in most drill holes: Syngenetic VMS Quartz-Tourmaline-Pyrite veins; and Skarn-type Hole on the southern boundary cut a Diorite Sill: appears from magnetic data to be ontrend of Integra Gold s Triangle Deposit Needs follow up at depth. 21

22 QMX Gold Follow-Up Southwestern Zone Discovery on Trend of Sigma/Lamaque 22

23 QMX Gold Follow-Up Beacon Zone Evaluating Results & New Discovery Beacon Zone 23

24 QMX Gold Follow-Up Beacon Zone New Discovery Beacon Zone Located on the southeast corner of Bourlamaque Batholith - competent mass of rock which fractured during later deformation forming traps for numerous gold deposits Beacon Zone on trend of shear hosted Wrightbar deposit 7.8g/t) Large shear-hosted quartz-tourmaline-pyrite veins and areas of network veining with potential for bulk mining Completed selective drill program Evaluating new discovery. Recent Success Completed a 7-hole, 924 m Diamond Drill Program to evaluate a well-developed NEtrending 20-m long Quartz-Tourmaline- Pyrite vein revealed on surface. Historical channel samples incl. 6.9 g/t Au over 6.0m and 45.3 g/t Au over 1.5m Further prospecting identified additional N-trending veins (grab samples up to 53 g/t Au) suggesting potential for a network vein system. Encouraging gold intersections of 6.1g/t over 5.4m (including 32.6g/t over 1.0m); 7.6g/t over 3.0m; and 2.4g/t over 5.1m in holes drilled parallel to the principal shear Wall-rock alteration adjacent to the network veins is pronounced and similar to that observed at Goldex Mines. This type of alteration has not been previously encountered within the Bourlamaque Batholith Zone remains open to the SE and may offer potential for open pit, bulk mining. 24

25 QMX Gold Follow-Up Beacon Zone Gold Showings Follow Up Drilling Planned 25

26 QMX Gold Follow-Up Beacon Zone Gold Showings Initial Results 26

27 QMX Gold Future Opportunity Dunraine Zone Evaluating Targets Dunraine Zone 27

28 QMX Gold Future Opportunity Dunraine Zone Test Extensions of Gold Bearing Shear Zones 28

29 QMX Gold Priorities Significant Progress Over Past 12 Months 1. Restructure balance sheet in order to restart exploration activities 2. Conclude debt settlement agreements 3. Re-start exploration activities 4. Complete Southwestern Zone reconnaissance drilling 5. Complete Beacon Zone follow-up drilling 6. Commence drilling on Bonnefond South Plug 7. Commence drilling on Bevcon Zone 8. Evaluate SWZ and Beacon results and develop follow-up drill campaigns. 9. Prioritize additional prospective gold and base metal projects within land package - Ongoing 10. Strategic review of non-core exploration properties 11. Pursue custom milling contracts 29

30 QMX Gold News Flow Near to Medium Term Catalysts Strong News Flow Results from SWZ and Beacon programs May Set targets and commence Bonnefond South drill program July Bonnefond South updates and results Set targets and commence Bevcon drill program September Evaluate and develop follow-up drilling on SWZ and Beacon Reviewing and prioritize medium and longer term opportunities on land package Potential non-core asset sales and custom milling agreements Ongoing 30

31 QMX Gold Experienced Team Management Team & Board of Directors Board of Directors Fred Leigh Chairman Mr. Leigh has been involved in the junior resource sector for more than 32 years and has had a significant role as founder, director and/or investor in many public companies. He is also the founder and President of Siwash Holdings Ltd., a privately held company that, for over 21 years has invested in early stage opportunities in the resource sector. Siwash was an early investor in successful companies such as, Wheaton River Minerals, Hathor Exploration and Blue Pearl Mining. Brad Humphrey President, Chief Executive Officer & Director Stéphane Amireault Director Stéphane Amireault to its Board of Directors. Mr. Amireault, MScA, P.Eng., has over 25 years of experience in mineral exploration, and is currently Vice President Exploration for Belo Sun Mining. Prior to joining Belo Sun, Mr. Amireault was the Vice President Exploration for Sulliden Gold Corporation until its acquisition by Rio Alto Mining in Mr. Amireault holds a master s degree in Applied Sciences from École Polytechnique of the University of Montréal and is a member in good standing of the Ordre des Ingénieurs du Québec. Ralph Lean Director Mr. Lean is a highly regarded business lawyer in the Toronto office of Gowling WLG. Mr Lean brings a broad base of expertise from startups to global corporations, in the private and public sectors as well as nationally and internationally. Mr. Lean was named one of the National Post s most influential business people in Canada. Bruce Humphrey, P.Eng. Director Mr. Humphrey is a mining engineer with over 35 years' experience. He served as the President and Chief Executive Officer of Desert Sun Mining Corp. from October 2004 to April From May 1998 to May 2004, Mr. Humphrey served as Senior Vice President and Chief Operating Officer of Goldcorp Inc. He is a member of the Professional Engineers of Ontario. He also serves as a director of several public companies in the resource sector. Management Brad Humphrey President, Chief Executive Officer & Director +20 years of international mining experience, predominantly as a precious metals analyst. Prior to joining QMX Gold, Mr. Humphrey worked for Morgan Stanley as an Executive Director and North American Precious Metals Analyst, where he was responsible for growing Morgan Stanley s North American Gold research coverage. Mr. Humphrey was also a Managing Director and Head of Mining Research at Raymond James and covered precious metal equities at CIBC World Markets and Merrill Lynch. Before starting his capital markets career, Mr Humphrey held a variety of mining industry roles from Corporate Development to contract underground miner. David Rigg Senior Vice President, Exploration David has +30 years of experience in the mining industry, including work on exploration and mine development programs in Ontario and Quebec. Most recently, he was President and CEO of the former Alexis Minerals Corporation and was the President and CEO of Liberty Mines. He has worked for Agnico Eagle Mines in Val d Or, Quebec in various capacities including Exploration Manager Agnico Eagle Mines and has gained international experience in Africa and Sweden. He contributed to the discovery of the Musselwhite Mine and was a member of the Laronde Mine discovery team awarded Prospector of the Year award by the QPA in Mr. Rigg obtained a B.A. and M.A. from King s College, Cambridge University, England in 1978 and a M.Sc. at Queens University in Jules Riopel Director of Exploration Mr. Riopel is a seasoned exploration professional with more than 2 decades of experience at all stages of exploration from grassroots through to production. Prior to joining QMX Gold, Mr. Riopel was Vice-President Exploration and Acquisition for Adventure Gold where he was directly involved with the Pascalis-Colombiere discovery adjacent to the QMX Gold land package. Mr. Riopel has spent the majority of his career in the Abitibi with several major mining companies including Richmont, Noranda and Cambior. Deb Battiston Chief Financial Officer +15 yrs of accounting, tax and corporate finance experience in Canada and Europe. From , she was the CFO of CD Capital Partners, a private real estate firm focused on developing mixed use retail and office real estate in Russia, Ukraine and Romania. From , she was the CFO of MAVA Investment Ltd., a private equity firm based in Budapest, Hungary. 31

32 QMX Gold Restructured Significantly Improved Balance Sheet Debt Settlement: Settled with various creditors, including debenture holders Secured Exploration Funding: Sufficient for multiple phases of drilling throughout Strategic Investors: Strong corporate support with Osisko Gold Royalties holding approximately 14.2% and Probe Metals holding 9.1% of QMX Gold. Additional Opportunities Reviewing potential custom milling agreements Additional non-core property and equipment sales (C$) Millions As at Jun 30, 2017 As at Jun 30, 2016 Cash Accounts Payable Total Current Liabilities Long Term Debenture 2.2 Deferred Closure Costs Working Capital 1.8 (18.1) 32

33 QMX Gold Select Results from Southwestern and Beacon Zones Southwestern Zone Reconnaissance Drilling Hole From (m) To (m) Length (m)* Au Grade (g/t) incl Beacon Zone Follow Up Drilling Hole From (m) To (m) Length (m)* Au Grade (g/t) incl incl

34 TSXV: QMX Corporate Headquarters Queen St. W. Toronto, Ontario M5H 2M5 Canada